Trade dispute, Iran conflict cloud German investor morale

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BERLIN (Reuters) - The mood among German investors remained unchanged at its lowest level in five and a half years in May, a survey showed on Tuesday, reflecting persisting concerns that Europe’s biggest economy could be hit be a trade dispute with the United States.

The ZEW research institute said its monthly survey showed a reading for economic sentiment among investors remained unchanged at -8.2 , the lowest since November 2012. This was in line with the Reuters consensus forecast.

A separate gauge measuring investors’ assessment of the economy’s current conditions edged down to 87.4 from 87.9 last month. The Reuters consensus forecast was for a reading of 86.2.

“The U.S. decision to back out of the nuclear treaty with Iran and fears of a further escalation of the international trade conflict with the U.S., as well as a further rise in crude oil prices, have had an overall negative impact on economic expectations in Germany”, ZEW researcher Achim Wambach said.